Despite United Nations efforts to mediate between rival political leaders, many Libyans report being unable to carry out routine transactions, while numerous state salaries remain unpaid, according to sources contacted by Reuters.
A stationery shop owner in Benghazi expressed his frustration with the ongoing financial instability, saying, “The clearing system isn’t working properly, making it difficult for anyone to receive money at a specific bank. We have payment deadlines and obligations that can’t be met on time.” The owner, Ahmed Sweilem, shared his concerns as the situation remains uncertain.
“Ever since this issue started, withdrawing dollars has become difficult. There’s a crisis in transferring money, and the exchange rate fluctuates daily, with both bank and cash rates rising. Most payment methods are now problematic,”He further noted.
The crisis erupted after Presidency Council head Mohammed al-Menfi announced the dismissal of Central Bank of Libya (CBL) governor Sadiq al-Kabir and the appointment of a new board—though such decisions are typically under the authority of legislative bodies.
Kabir, refusing to step down, was supported by eastern factions who responded by blocking most oil production and exports in an effort to pressure the Tripoli-based government.
Despite the new board’s installation at the Central Bank of Libya (CBL), Sadiq al-Kabir still appears to control the bank’s website. The new board has asked Kabir to provide the codes necessary for transactions.
Western authorities have directed banks to process workers’ salaries, but it’s uncertain whether the CBL has successfully facilitated these payments.
This ongoing crisis compounds Libya’s existing challenges, including a persistent liquidity shortage that has made it hard to obtain both dinar and dollar banknotes, even for those with ample funds in their accounts.
An intense fuel shortage, attributed by analysts to smuggling, a shutdown at an oilfield supplying a key refinery, and other external factors, has caused long lines at gas stations.
“People are worn out from waiting and facing hardships,” said Mohammed Salem, a Misrata resident.
“The fuel crisis is impacting everyone—trucks are waiting for two or three days to refuel.”